UnEmployment

[AZ PowerWash Pros]

Can anyone explain to me how unemployment works from a company perspective? Every time I try to Google it I get the side of the employee. I am wondering if I fire an employee and they receive unemployment from DES how much do I have to pay out of pocket? All of it? A % of it? Does anyone know?

I know every state is different but any advice helps...

Thanks for the help in advance.

 

[Timothy]

You should currently pay about 2% of payroll to the state as UE tax. If you have strong payroll and only one small claim, your rate may increase only slightly next year. The stinker is that the rate applies to all of your payroll so even a 1/2 of 1% increase would amount to $1,500.00 a year additional on $300,000.00 of wages. You can probably exempt the owners compensation from UE insurance because you likely can't claim benefits unless you shut the company down anyways.
No, you don't pay out of pocket for claims. Think of all that money you have already paid in when no one was drawing anything against you.


https://www.azdes.gov/main.aspx?menu=316&id=3983

Edit: It appears as if you pay UE tax only on the first $7,000.00 per year per employee, not on the gross wages paid per year. That's not so bad. Until you realize that it can go as high as 5% on that $7,000.00 plus special assessments when times get tough for the fund.

 

[Scott Stone]

Bingo, he is spot on. If you terminate someone for cause, at least in Arizona, keep meticulous records. Depending on the person making the judgement, no matter what the former employee did, your account will be charged.
We had a guy get fired for multiple accidents, all his fault except for one, and e got hs unemployment. If ou have a lot of employees, there are less expensive companies then state fund, just saying.